Listen up, you need to start thinking about your personal finances now more than ever. In just a few short years, personal finance is going to be huge. Why is that, you ask? Well, for starters, technology is changing everything. Apps and websites are making it easier than ever to track your spending, set budgets, and invest for the future. At the same time, the traditional paths to financial security like pensions are disappearing. If you want to retire comfortably, you’re going to have to take matters into your own hands. Combine that with rising interest rates, increasing life expectancies, and a volatile stock market, and it’s a perfect storm for personal finance advice and education. Here are 13 reasons why personal finance advice is poised to be the next big thing in 2024. Buckle up, it’s going to be a wild ride.
Personal Finance Advice Will Be Even More Important
Personal finance advice is only going to become more important in the coming years. With technology advancing and life moving faster each day, keeping your financial house in order can seem overwhelming. But the good news is, there are more resources than ever to help you gain control of your money and set yourself up for success.
Budgeting apps make it simple
There are dozens of budgeting apps out there to help you track your income, expenses, and saving goals. Many are free to use and sync up with your accounts to automatically log your transactions. These tools make budgeting almost effortless and help ensure you’re not overspending each month.
Online courses provide guidance
If you want a more structured approach, look for free or low-cost personal finance courses. There are many available as video series, podcasts, or self-study workbooks. These courses walk you through important topics like paying off debt, saving for emergencies, planning for retirement, and more. They teach you personal finance strategies and help you develop habits to become financially independent.
Advisors offer tailored advice
For hands-on help, consider working with a financial advisor. While advisors used to only cater to high-net-worth individuals, many now offer virtual or online services for an affordable monthly fee. They can look at your full financial picture and provide customized advice for your situation. An advisor helps ensure you’re making the best decisions to reach your long-term goals.
In the coming years, personal finance advice and resources will only continue to grow. Take advantage of the options available to gain control of your finances. Your future self will thank you.
Millennials Will Drive Demand for Personal Finance Education
Millennials are coming of age and taking control of their finances. They want practical advice for navigating important life milestones like paying off student loans, buying a home, and saving for retirement. Personal finance educators and advisors who can provide meaningful guidance tailored to Millennials’ unique needs and values will be in high demand.
According to surveys, the majority of Millennials consider themselves “financially illiterate.” They want help developing financial literacy and learning hands-on skills like budgeting, investing, and tax planning. Advisors who can educate Millennials in an empathetic, approachable way will build trust and loyalty.
Millennials also value authenticity and social good. They’re drawn to brands and services that align with causes they care about, like financial inclusion and sustainability. Advisors who incorporate social impact into their services and messaging will resonate most.
Of course, technology is essential for reaching Millennials. They grew up with smartphones and expect digital-first experiences. Whether through mobile apps, online courses, social media, or virtual meetups, advisors need a strong digital presence and the ability to engage Millennials on their terms.
While the demand for personal finance education is high, Millennials remain skeptical due to predatory practices they’ve witnessed. Advisors must establish credibility and trust through transparency, customer reviews and referrals, and a commitment to clients’ best interests above all else. With the right mix of skills and values, personal finance professionals will be poised to help Millennials build financial security and shape a brighter financial future.
Fintech Will Enable New Kinds of Personal Finance Advice
Fintech companies are creating apps and services that provide personalized financial advice and management. These new tools will make financial planning and advice more accessible, affordable and customized for individuals in 2024.
Robo-advisors
Robo-advisors, automated investment services, will become more advanced and widely used. They can provide tailored investment recommendations and automatically rebalance portfolios based on your financial goals. Robo-advisors from companies like Betterment and Wealthfront are affordable, easy to use, and help you make the most of your money.
Budgeting apps
Apps like Mint, YNAB and EveryDollar can track your spending, create budgets and provide insights to improve your financial well-being. They connect all your accounts in one place so you have a complete view of your money. These apps use your data to give you personalized tips for saving money and paying off debt.
Micro-investing platforms
New fintech companies are making investing more accessible. Micro-investing platforms like Acorns, Stash and Robinhood let you invest your “spare change” and small amounts of money in the stock market. They have low or no fees, and you can start investing with as little as $5. These tools open up investing to more people and enable new types of financial advice.
Chatbots and AI
Advances in artificial intelligence will power new personal finance tools. Chatbots and automated assistants can answer questions, provide guidance and handle simple tasks. They get smarter over time by learning your habits and preferences. AI has the potential to make personal finance advice cheaper and more scalable so it can reach more people.
With fintech driving change, personal finance advice will become more digital, data-driven and customized in 2024. These new tools and services put people in control of their financial lives and help them make progress towards their goals. The future of personal finance advice is both high-tech and high-touch, combining AI and automation with human insight and guidance.
The Gig Economy Means More People Managing Their Own Finances
If you’re looking to start a side hustle or freelance to earn some extra money, you’ll need to get savvy with your personal finances. As the gig economy grows, more people are becoming their own bosses and managing their own money. But that also means handling your own taxes, health insurance, retirement savings, and all the other little details that typically come with a traditional full-time job.
It can feel overwhelming at first. But with some basic knowledge and the right tools, you’ll be in control of your finances in no time. Here are some tips to get started:
•Educate yourself on small business taxes. When you’re self-employed, you’ll need to pay self-employment tax of 15.3% on your earnings to cover Social Security and Medicare. You’ll also likely need to pay estimated quarterly taxes. Learn the basics so you can set aside enough of each paycheck to cover your tax liability.
•Open a business bank account. Keep your business income and expenses separate from your personal accounts. This will make tax time much easier and help you keep better track of your business’s financial health.
•Build an emergency fund. Have at least 3-6 months of essential expenses in savings as a safety net. This is especially important when your income may fluctuate. An emergency fund gives you stability so you can focus on growing your business.
•Look into health insurance options. You’ll need to find your own health insurance when self-employed. Shop plans on the health insurance marketplace to compare rates and coverage options. Consider options like high-deductible plans paired with health savings accounts to keep costs down.
•Save for retirement. Open an IRA or solo 401(k) to start saving and invest in your future. Even if you start small, saving something is better than nothing. Take advantage of tax-advantaged accounts to get the most of your retirement contributions.
•Use free tools to track income and expenses. Apps like QuickBooks Self-Employed, Mint, and Personal Capital can connect all your business and personal accounts in one place. See your cash flow at a glance and ensure your business remains profitable. They make managing your own finances a breeze.
The gig economy provides freedom and flexibility, but also more responsibility. Developing financial literacy and using resources designed for self-employed individuals will set you up for success. With hard work and persistence, you can build a thriving business and achieve financial independence.
Why You Should Make Personal Finance a Priority in 2024
Making your personal finances a priority should be at the top of your list for 2024. Why? Because the decisions you make with your money this year could significantly impact your financial freedom and stability for years to come.
- Pay Off High-Interest Debt
High-interest debts like credit cards are dangerous because the balances can quickly get out of control due to compounding interest charges. Make paying off high-interest debts a priority to avoid paying thousands in unnecessary fees each year. Even paying off just one or two high-interest debts will free up more of your money to put toward other financial goals.
2. Build an Emergency Fund
Life is unpredictable, and unexpected expenses like medical bills, home or car repairs can happen at any time. Having an emergency fund with 3 to 6 months of essential expenses gives you a financial safety net so you don’t have to go into debt to pay for surprises. Aim to save at least $500 to $1000 per month to build up your emergency fund.
3. Review Your Insurance Policies
Insurance protects you financially in case of unforeseen events like illness, accidents, or natural disasters. Make sure you have adequate coverage for health, home, auto, and life insurance based on your needs. Shop around at different companies to get the best rates. Dropping unnecessary coverage or increasing deductibles can save you money each month.
4. Contribute to Retirement Accounts
Retirement may still seem far off, but time is one of the most valuable assets when it comes to saving for retirement. Increase contributions to retirement accounts like 401(k)s, IRAs, and Roth IRAs to take advantage of tax benefits and compounding returns. Aim to save at least 15% of your income for retirement to gain financial independence.
Making your personal finances a priority in 2024 will set you up for financial success this year and beyond. Take control of your money by paying off debt, building an emergency fund, reviewing insurance, and contributing more to retirement accounts. The decisions you make today will have a lasting impact on your financial freedom tomorrow.
Conclusion
So there you have it, 13 solid reasons why personal finance advice is poised to be huge in 2024. The trends are clear – people want practical money tips and tools to gain control of their financial lives. As costs rise, wages stagnate, and economic uncertainty continues, personal finance experts will be more in demand than ever. Whether through online courses, video tutorials, podcasts or good old-fashioned books, personal finance education will help millions take charge of their money and find financial freedom. The future is bright for anyone looking to learn how to budget better, pay off debt, invest for the future and achieve their money goals. So start following the top experts now and get ready to make 2024 your best financial year yet!
